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8-K - FORM 8-K - INTERPHASE CORP | c16215e8vk.htm |
FOR IMMEDIATE RELEASE
Media Contact: |
Investor Contact: | |
Lisa Bascom Interphase Corporation 214-654-5000 pr@iphase.com |
Joseph Hassett Interphase Corporation 866-630-INPH ir@iphase.com |
Interphase Announces First Quarter 2011 Financial Results
Revenue Growth of 78% Year to Year
Revenue Growth of 78% Year to Year
PLANO, Texas April 28, 2011 Interphase Corporation (NASDAQ: INPH), a leading global provider
of solutions for converged communications networks, today reported financial results for its first
quarter ended March 31, 2011.
Revenues for the first quarter of 2011 increased approximately 78% to $6.7 million when compared to
$3.8 million for the first quarter of 2010. On a sequential basis, revenues increased
approximately 15% from $5.8 million in the fourth quarter of 2010. Revenues in the quarter were
primarily derived from telecommunications product revenues, which increased to $5.5 million in the
first quarter of 2011 compared to $3.2 million for the first quarter of 2010. Enterprise product
revenues increased to $840,000 compared to $217,000 on a year to year basis, and services revenues
increased to $319,000 for the first quarter of 2011 compared to $291,000 for the first quarter of
2010. Gross margin was 49% for the first quarter of both 2011 and 2010. The company reported a
net income of $231,000, or $0.03 per fully diluted share in the first quarter of 2011 compared to a
net loss of $2.4 million, or ($0.34) per share in the first quarter of 2010. On March 31, 2011,
the companys working capital position was $14.0 million, including cash and marketable securities
of $9.6 million.
We are very pleased to announce our fourth consecutive quarter of sequential revenue growth, and
our business outlook continues to improve, said Gregory B. Kalush, CEO and President of
Interphase. We are excited about the future of our company, and look forward to expanding our
horizons into new exciting markets that embrace many of the value propositions we offer. During
2011, we intend to continue to capitalize on new revenue opportunities and improve our process
efficiency so that we are able to compete effectively in these new markets.
On April 7, 2011, Interphase was named as one of the defendants in a lawsuit filed by Mosaid
Technologies (Mosaid). The complaint includes allegations that Interphase has infringed and is
infringing upon a certain registered U.S. patent to which Mosaid has enforcement rights. The sole
infringement allegation directed at Interphase appears to concern communications controller chips
that Interphase purchases (indirectly) from Freescale Semiconductor, Inc., (Freescale), another
defendant in
the infringement allegation, which are used in several of Interphases products. Interphase does
not know if there is any merit to Mosaids allegations. Nevertheless, Interphase intends, and
Interphase understands that Freescale intends, to vigorously defend the allegations; and to the
extent that the infringement claim relates to the Freescale chips used in Interphases products,
Freescale will also defend Interphase and indemnify Interphase against damages in the lawsuit.
About Interphase Corporation
Interphase Corporation (NASDAQ: INPH News) delivers solutions for LTE and WiMAX, interworking
gateways, packet processing, network connectivity, and security for key applications for the
communications and enterprise markets. Founded in 1974, Interphase provides expert engineering
design and electronics manufacturing services, in addition to its commercial-off-the-shelf (COTS)
portfolio of products. Interphase is headquartered in Plano, Texas, with sales offices in the
United States and Europe. Clients include Alcatel-Lucent, Emerson Network Power, Fujitsu Ltd.,
Genband, Hewlett Packard, ip.access, Samsung, and Sun Microsystems. Visit www.iphase.com.
Forward-Looking Statements
This press release contains forward-looking statements about the business, financial condition and
prospects of the Company. These statements are made under the safe harbor provisions of the
Private Securities Litigation Reform Act of 1995. The actual results of the Company could differ
materially from those indicated by the forward-looking statements because of various risks and
uncertainties, including (without limitation) effects of the ongoing issues in global credit and
financial markets, our reliance on a limited number of customers, failure to see spending
improvements in the telecommunications and computer networking industries, significant changes in
product demand, the development and introduction of new products and services, changes in
competition, various inventory risks due to changes in market conditions and other risks and
uncertainties indicated in the Companys filings and reports with the Securities and Exchange
Commission. All of the foregoing risks and uncertainties are beyond the ability of the Company to
control, and in many cases, the Company cannot predict the risks and uncertainties that could cause
its actual results to differ materially from those indicated by the forward-looking statements.
When used in this press release, the words believes, plans, expects, will, intends, and
anticipates and similar expressions as they relate to the Company or its management are intended
to identify forward-looking statements.
###
Interphase and the Interphase logo are trademarks or registered trademarks of Interphase
Corporation. All other trademarks are the property of their respective owners.
Condensed Consolidated Financial Statements
Interphase Corporation
Condensed Consolidated Statements of Operations
(amounts in thousands, except per-share amounts)
(amounts in thousands, except per-share amounts)
Three Months Ended Mar. 31, | ||||||||
2011 | 2010 | |||||||
Revenues |
$ | 6,688 | $ | 3,759 | ||||
Gross margin |
3,252 | 1,859 | ||||||
Research and development |
1,032 | 2,093 | ||||||
Sales and marketing |
1,004 | 1,260 | ||||||
General and administrative |
985 | 1,004 | ||||||
Total operating expenses |
3,021 | 4,357 | ||||||
Income (loss) from operations |
231 | (2,498 | ) | |||||
Income (loss) before income tax |
239 | (2,530 | ) | |||||
Net income (loss) |
231 | (2,363 | ) | |||||
Net income (loss) per diluted share |
$ | 0.03 | $ | (0.34 | ) | |||
Weighted average common and dilutive shares |
6,911 | 6,871 |
Selected Consolidated Balance Sheet Information
(amounts in thousands)
(amounts in thousands)
Mar. 31, 2011 | Dec. 31, 2010 | |||||||
Cash and marketable securities |
$ | 9,608 | $ | 10,777 | ||||
Accounts receivable, net |
6,011 | 4,633 | ||||||
Inventories |
1,530 | 1,645 | ||||||
Net property, plant and equipment |
381 | 414 | ||||||
Total assets |
19,764 | 19,314 | ||||||
Total liabilities |
8,047 | 8,304 | ||||||
Total shareholders equity |
$ | 11,717 | $ | 11,010 |
###